SAT Issues New Rules on Indirect Transfers of Assets by Nonresident Enterprises
Tax Analysis:February 6, 2015/China
On 6 February 2015, China’s State Administration of Taxation (SAT) issued new guidance (Bulletin  No. 7, "Bulletin 7") on the PRC tax treatment of an indirect transfer of assets by a nonresident enterprise. (Tax Analysis:February 6, 2015/China)
Bulletin 7 is the latest regulatory instrument on indirect transfers and follows two previous sets of guidance issued in 2009 and 2011: the “Notice on Strengthening the Administration of Enterprise Income Tax on Income from the Transfer of Shares by Nonresident Enterprises” (Guoshuihan  Circular No. 698, "Circular 698") and the “Bulletin on Several Issues Concerning the Administration of Income Tax on Nonresident Enterprises” (Bulletin of SAT  No. 24, "Bulletin 24").